COFFEE, TOP 5 FASTEST GROWING MARKETS
BY RETAIL VALUE (CAGR%), 2012-2016
Compound annual growth rate
(average value groth over past 5 years, %)
Indonesia Turkey India Vietnam Chile
19.6% 17.5% 15.1% 14.9% 12.9%
Innovation within
the coffee space
In terms of local tastes, currently Asia Pacific leads the way in
launches of ready-to-drink cold coffee. In 2016, 29% of all coffee
launches in Asia Pacific were ready-to-drink cold coffee products,
compared to just 10% in Europe. Additionally, coffee mixes are a
huge part of the retail coffee landscape. In the same year, ‘x-in-
1’, (i.e. 2-in-1, 3-in-1 or 4-in-1 mixes) accounted for 16% of all retail
coffee launches in Asia, up from 12% in 2014.
However, instant coffee still dominates the retail market in Asia. Two
in five (42%) coffee launches in Asia Pacific were soluble coffee
granule products, compared to just one in five (20%) launches in
Europe and a mere 6% of launches in North America in 2016.
Riding the third coffee wave
Moving forward, the humble coffee bean is likely to be receiving
a premium makeover. While growth has already been seen in
this market, with 15% of coffee products launched in Asia in 2016
carrying a premium claim up from 11% in 2013, the ‘third wave’
coffee movement is likely to propel this further. As defined by Mintel,
the ‘third wave’ coffee movement is taking coffee appreciation a
step further, focusing intensely on where beans are sourced and
how they are roasted, with a renewed focus on brewing methods.
Globally, it is coffee pods which are causing the biggest stir. Pods
accounted for over one quarter (26%) of all global coffee retail
innovation in 2016, up from 11% of launches in 2011. Although still in
its early stages in Asia Pacific, pod innovation is still showing strong
signs of growth in this region. Around one in eight (13%) coffee
products launched in 2016 was a coffee pod, up from 4% of
launches in this region in 2011.
Currently, America is leading this movement, accounting for over
one quarter (27%) of all global ‘third wave’ coffee retail launches*.
While 16% of US consumers describe themselves as ‘coffee snobs’,
consumers across Asia are also now showing a developing love
for quality coffee. Mintel research reveals that 67% of Indonesian
metro consumers** believe that the quality of coffee is more
important than how easy it is to make, while 22% believe they
are knowledgeable about coffee and over half (53%) say it is
important for them to learn more about coffee.
*defined as ground or bean or pods/capsules which use the product
descriptions, “small batch” or “single origin” or artisanal or craft
**1,755 Indonesian adults based in Jakarta, Bandung, Surabaya,
Yogyakarta, and Semarang
Source: Mintel
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